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Oracle® Sourcing Implementation and Administration Guide Release 12 Part No. B31599-01 December 2006 Oracle Sourcing Implementation and Administration Guide, Release 12 Part No. B31599-01 Copyright © 2002, 2006, Oracle. All rights reserved. Primary Author: Richard Sears The Programs (which include both the software and documentation) contain proprietary information; they are provided under a license agreement containing restrictions on use and disclosure and are also protected by copyright, patent, and other intellectual and industrial property laws. Reverse engineering, disassembly, or decompilation of the Programs, except to the extent required to obtain interoperability with other independently created software or as specified by law, is prohibited. The information contained in this document is subject to change without notice. If you find any problems in the documentation, please report them to us in writing. This document is not warranted to be error-free. 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Other names may be trademarks of their respective owners. Contents Send Us Your Comments Preface 1 Overview About Oracle Sourcing.............................................................................................................. 1-1 2 Implementing Oracle Sourcing Introduction............................................................................................................................... 2-2 Overview of Oracle Sourcing Implementation........................................................................ 2-3 Upgrading an Existing Oracle Sourcing System...................................................................... 2-7 Prerequisites............................................................................................................................ 2-10 Oracle Sourcing Implementation Steps.................................................................................. 2-10 Set the Enterprise Name (Required)....................................................................................... 2-11 Define System Profile Options (Required)............................................................................ 2-11 Assign Sourcing Responsibilities (Required)........................................................................ 2-13 Define Buyer Security (Optional)........................................................................................... 2-15 Set Up Attribute Groups and Requirement Sections (Optional)........................................... 2-16 Set Up Negotiations Configuration (Optional)...................................................................... 2-18 Subscribe to Notifications (Optional).....................................................................................2-24 Register Suppliers and Supplier Users (Required)................................................................ 2-24 Define Negotiation Terms and Conditions (Optional).......................................................... 2-25 Define Reusable Attribute Lists (Optional)........................................................................... 2-26 Define Reusable Requirement Lists (Optional) .................................................................... 2-30 Define Cost Factors and Cost Factor Lists (Optional)............................................................ 2-33 Define Reusable Invitation Lists (Optional) ......................................................................... 2-35 iii Define Negotiation Styles (Optional)..................................................................................... 2-37 Define Purchasing Document Style (Optional)..................................................................... 2-38 Define Negotiation Templates (Optional)..............................................................................2-38 Create Abstracts and Forms (Optional).................................................................................. 2-39 Set Up Document Print Layouts (Optional)........................................................................... 2-54 Set Up Demand Workbench (Optional)................................................................................. 2-54 Enable Award Approval (Optional)........................................................................................2-55 Enable Sourcing Optimization (Optional)............................................................................. 2-55 Enable Oracle Procurement Contracts (Optional).................................................................. 2-56 Enable Oracle Services Procurement (Optional).................................................................... 2-56 Set Up Inbox for Notifications (Optional).............................................................................. 2-57 Set Up Enhanced Supplier Search Feature (Optional)........................................................... 2-57 Enable Supplier Site Access (Optional).................................................................................. 2-57 Enable Supplier Scorecard (Optional).................................................................................... 2-57 Customize Content (Optional) ............................................................................................... 2-57 Extend Sourcing Business Events (Optional) ........................................................................ 2-58 3 Maintaining and Administering Oracle Sourcing Introduction............................................................................................................................... 3-1 Supplier Registration and Profile Maintenance....................................................................... 3-1 Deactivating Supplier Contacts................................................................................................ 3-2 Deactivating a Supplier Site..................................................................................................... 3-2 Suppliers on Purchase Order Hold Status ............................................................................... 3-2 Canceling or Deleting a Negotiation........................................................................................ 3-3 Using Sourcing Events.............................................................................................................. 3-3 Unlocking Draft Negotiations.................................................................................................. 3-4 Using the Concurrent Manager to Administer Large Negotiations......................................... 3-5 Applications Setup.................................................................................................................... 3-7 A Implementing E-Business Suite for Oracle Sourcing Introduction.............................................................................................................................. A-1 B Oracle Sourcing Responsibilities and Functions Oracle Sourcing Responsibilities ............................................................................................ B-1 Responsibility/Menu/Function Cross-Reference..................................................................... B-2 C Oracle Sourcing Notifications Introduction ............................................................................................................................. C-3 Notifications Content............................................................................................................... C-3 iv RFx/Auction Collaboration Team Member Assignment....................................................... C-11 RFx/Auction Collaboration Team Task Completion............................................................. C-12 RFx/Auction Requires Your Approval................................................................................... C-13 RFx/Auction Requires Your Approval - Reminder................................................................ C-13 RFx/Auction Has Been Approved...........................................................................................C-14 RFx/Auction Has Been Rejected............................................................................................. C-15 RFx/Auction Creation Confirmation...................................................................................... C-15 RFx/Auction Invitation - Supplier Contact............................................................................ C-16 RFx/Auction Invitation - Supplier Additional Contact......................................................... C-17 RFx/Auction Invitation - Prospective Supplier Contact........................................................ C-18 RFx/Auction Acknowledgement Reminder - Participants.................................................... C-19 RFx/Auction Bid/Quote/Response Submitted....................................................................... C-19 RFx/Auction Extend................................................................................................................ C-20 RFx/Auction Bid/Quote/Response Disqualification - All Invitees and Respondents ......... C-21 RFx/Auction Bid/Quote/Response Disqualification - Respondent with Bid/Quote/Response Disqualified............................................................................................................................ C-22 RFx/Auction Online Discussion Message Sent..................................................................... C-22 RFx/Auction Early Close ........................................................................................................ C-23 RFx/Auction Additional Round Invitation - Uninvited Participants.................................... C-24 RFx/Auction Amendment Acknowledgement....................................................................... C-25 RFx/Auction Canceled............................................................................................................ C-25 RFQ/Auction Award Approval Required.............................................................................. C-26 RFQ/Auction Award Approval Reminder............................................................................. C-27 RFQ/Auction Award Approval Approved............................................................................. C-27 RFQ/Auction Award Approval Rejected................................................................................C-28 RFQ/Auction Award .............................................................................................................. C-29 RFQ/Auction Allocation Failed.............................................................................................. C-30 RFQ/Auction Purchase Order Creation Status.......................................................................C-31 RFx/Auction Copy Successful (Large Negotiation)............................................................... C-32 RFx/Auction New Round Creation Successful (Large Negotiation)..................................... C-32 RFx/Auction Publish Successful (Large Negotiation)........................................................... C-33 RFx/Auction Export to Spreadsheet Successful (Large Negotiation).................................... C-33 RFx/Auction PDF Generation Successful (Large Negotiation)..............................................C-34 RFQ/Auction Award Spreadsheet Import Successful (Large Negotiation).......................... C-35 RFx/Auction Response Spreadsheet Import Successful (Large Negotiation)....................... C-35 RFx/Auction Lines Spreadsheet Import Successful (Large Negotiation).............................. C-36 RFx/Auction Amendment Creation Successful (Large Negotiation).....................................C-36 RFx/Auction Negotiation Approval Started (Large Negotiation).......................................... C-37 RFQ/Auction Award Optimization Successful (Large Negotiation)..................................... C-37 RFx/Auction Publish Response Successful (Large Negotiation)........................................... C-38 RFx/Auction Response Validation Successful (Large Negotiation)...................................... C-38 v RFQ/Auction AutoAward Export to Spreadsheet Successful (Large Negotiation)...............C-39 RFQ/Auction Renegotiate Blanket Successful (Large Negotiation)...................................... C-40 RFQ/Auction Accept Award Optimization Scenario Successful (Large Negotiations)........ C-40 RFx/Auction Publish Negotiation Failed (Large Negotiation) ............................................. C-41 RFQ/Auction Renegotiate Blanket Failed (Large Negotiation)............................................. C-41 RFQ/Auction Award Spreadsheet Import Failed (Large Negotiation)..................................C-42 RFx/Auction Response Spreadsheet Import Failed (Large Negotiation).............................. C-42 RFx/Auction Amendment Creation Failed (Large Negotiation)............................................ C-43 New Round Creation Failed (Large Negotiation).................................................................. C-43 RFx/Auction Negotiation Copy Failed (Large Negotiation).................................................. C-44 RFx/Auction Negotiation Approval Request Failed (Large Negotiation)............................. C-44 RFx/Auction Response Validation Failed (Large Negotiation)............................................. C-45 RFQ/Auction AutoAward Export to Spreadsheet Failed (Large Negotiation)...................... C-45 RFx/Auction Export to Spreadsheet Failed (Large Negotiation)........................................... C-46 RFx/Auction PDF Generation Failed (Large Negotiation)..................................................... C-46 RFx/Auction Publish Response Failed (Large Negotiation).................................................. C-47 RFQ/Auction Award Optimization Failed (Large Negotiation)............................................ C-47 RFx/Auction Lines Spreadsheet Import Failed (Large Negotiation)..................................... C-48 RFQ/Auction Accept Award Optimization Scenario Failed (Large Negotiation).................C-49 Reminder Notifications.......................................................................................................... C-49 Timing of Reminder Notifications......................................................................................... C-50 Index vi Send Us Your Comments Oracle Sourcing Implementation and Administration Guide, Release 12 Part No. B31599-01 Oracle welcomes customers' comments and suggestions on the quality and usefulness of this document. Your feedback is important, and helps us to best meet your needs as a user of our products. For example: • • • • • • Are the implementation steps correct and complete? Did you understand the context of the procedures? Did you find any errors in the information? Does the structure of the information help you with your tasks? Do you need different information or graphics? If so, where, and in what format? Are the examples correct? Do you need more examples? If you find any errors or have any other suggestions for improvement, then please tell us your name, the name of the company who has licensed our products, the title and part number of the documentation and the chapter, section, and page number (if available). 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A list of Oracle offices is available on our Web site at www.oracle.com. vii Preface Intended Audience Welcome to Release 12 of the Oracle Sourcing Implementation and Administration Guide. See Related Information Sources on page x for more Oracle Applications product information. TTY Access to Oracle Support Services Oracle provides dedicated Text Telephone (TTY) access to Oracle Support Services within the United States of America 24 hours a day, seven days a week. For TTY support, call 800.446.2398. Documentation Accessibility Our goal is to make Oracle products, services, and supporting documentation accessible, with good usability, to the disabled community. To that end, our documentation includes features that make information available to users of assistive technology. This documentation is available in HTML format, and contains markup to facilitate access by the disabled community. Accessibility standards will continue to evolve over time, and Oracle is actively engaged with other market-leading technology vendors to address technical obstacles so that our documentation can be accessible to all of our customers. For more information, visit the Oracle Accessibility Program Web site at http://www.oracle.com/accessibility/ . Accessibility of Code Examples in Documentation Screen readers may not always correctly read the code examples in this document. The conventions for writing code require that closing braces should appear on an otherwise empty line; however, some screen readers may not always read a line of text that consists solely of a bracket or brace. ix Accessibility of Links to External Web Sites in Documentation This documentation may contain links to Web sites of other companies or organizations that Oracle does not own or control. Oracle neither evaluates nor makes any representations regarding the accessibility of these Web sites. Structure 1 2 3 A B Overview Implementing Oracle Sourcing Maintaining and Administering Oracle Sourcing Implementing E-Business Suite for Oracle Sourcing Oracle Sourcing Responsibilities and Functions This appendix provides information on the responsibilities and functions that are initially provided by the system. This includes tables showing which functions are assigned to each Oracle Sourcing responsibility. C Oracle Sourcing Notifications Related Information Sources Online Documentation All Oracle Applications documentation is available online (HTML or PDF). • Online Help - Online help patches (HTML) are available on OracleMetaLink. • OracleMetaLink Knowledge Browser - The OracleMetaLink Knowledge Browser lets you browse the knowledge base, from a single product page, to find all documents for that product area. Use the Knowledge Browser to search for release-specific information, such as FAQs, recent patches, alerts, white papers, troubleshooting tips, and other archived documents. Oracle Applications Multiple Organizations Implementation Guide: This guide describes the multiple organizations concepts in Oracle Applications. It describes in detail on setting up and working effectively with multiple organizations in Oracle Applications. This guide provides you information on using Oracle Bill Presentment Architecture. Consult this guide to create and customize billing templates, assign a template to a rule and submit print requests. This guide also provides detailed information on BPA page references, seeded content items in BPA and template assignment attributes. This guide describes how to implement Oracle Daily Business Intelligence, including information on how to create custom dashboards, reports, and key performance indicators. Oracle Daily Business Intelligence User Guide: x This guide describes how to use the preseeded Daily Business Intelligence dashboards, reports, and key performance indicators. Oracle Financials Concepts Guide: This guide describes the fundamental concepts of Oracle Financials. The guide is intended to introduce readers to the concepts used in the applications, and help them compare their real world business, organization, and processes to those used in the applications. Oracle Financials Implementation Guide: This guide provides you with information on how to implement the Oracle Financials E-Business Suite. It guides you though setting up your organizations, including legal entities, and their accounting, using the Accounting setup Manager. It covers intercompany accounting and sequencing of accounting entries, and it provides examples. Oracle iProcurement Implementation and Administration Guide: This manual describes how to set up and administer Oracle iProcurement. Oracle iProcurement enables employees to requisition items through a self–service, Web interface. Oracle iSupplier Portal User Guide: This guide contains information on how to use the Oracle iSupplier Portal application to enable secure transactions between buyers and suppliers using the Internet. Using Oracle iSupplier Portal, suppliers can monitor and respond to events in the procure-to-pay cycle. Oracle iSupplier Portal Implementation Guide: This guide contains information on how to implement the Oracle iSupplier Portal and enable secure transactions between buyers and suppliers using the Internet. Oracle Payables User Guide: This guide describes how to use Oracle Payables to create invoices and make payments. In addition, it describes how to enter and manage suppliers, import invoices using the Payables open interface, manage purchase order and receipt matching, apply holds to invoices, and validate invoices. It contains information on managing expense reporting, procurement cards, and credit cards. This guide also explains the accounting for Payables transactions. Oracle Payables Implementation Guide: This guide provides you with information on how to implement Oracle Payables. Use this guide to understand the implementation steps required for how to set up suppliers, accounting, and tax. Oracle Payables Reference Guide: This guide provides you with detailed information about the Oracle Payables open interfaces, such as the Invoice open interface, which lets you import invoices. It also xi includes reference information on purchase order matching and purging purchasing information. Oracle Procurement Buyer's Guide to Punchout and Transparent Punchout: This guide contains necessary information for customers implementing remote catalog content on a supplier's Web site or on Oracle Exchange. Oracle Procurement Contracts Online Help: This guide is provided as online help only from the Oracle Procurement Contracts application and includes information about creating and managing your contract terms library. Oracle Purchasing User's Guide: This guide describes how to create and approve purchasing documents, including requisitions, different types of purchase orders, quotations, RFQs, and receipts. This guide also describes how to manage your supply base through agreements, sourcing rules, and approved supplier lists. In addition, this guide explains how you can automatically create purchasing documents based on business rules through integration with Oracle Workflow technology, which automates many of the key procurement processes. Oracle Trading Community Architecture User Guide: This guide describes the Oracle Trading Community Architecture and how to use features from the Trading Community Manager responsibility to create, update, enrich, and cleanse the data in the TCA Registry. It also describes how to use Resource Manager to define and manage resources. Oracle Applications System Administrator's Guide This guide provides planning and reference information for the Oracle Applications System Administrator. It contains information on how to define security, customize menus, and manage concurrent processing. Oracle General Ledger Implementation Guide: This guide provides you with information on how to implement Oracle General Ledger. Use this guide to understand the implementation steps required for application use, including how to set up Accounting Flexfields, Accounts, and Calendars. Oracle Applications Flexfields Guide This guide provides planning, setup and reference information for the Oracle Sourcing implementation team members creating value sets. Using Oracle HRMS - The Fundamentals This guide explains how to set up organizations and site location. Oracle Inventory User's Guide This guide describes how to define items and item information, perform receiving and inventory transactions, maintain cost control, plan items, perform cycle counting and xii physical inventories, and set up Oracle Inventory. Managing Your Workforce Using Oracle HRMS This guide explains how to enter employees and track employee date. Oracle Workflow Developer's Guide This guide describes how Oracle Applications users can view and respond to workflow notifications and monitor the progress of their workflow processes. Oracle Applications Developer's Guide For a full list of documentation resources for Oracle Applications Release 12, see Oracle Applications Documentation Resources, Release 12, OracleMetaLink Document 394692.1. This guide contains information on how to implement certain aspects of Oracle Applications. Integration Repository The Oracle Integration Repository is a compilation of information about the service endpoints exposed by the Oracle E-Business Suite of applications. It provides a complete catalog of Oracle E-Business Suite's business service interfaces. The tool lets users easily discover and deploy the appropriate business service interface for integration with any system, application, or business partner. The Oracle Integration Repository is shipped as part of the E-Business Suite. As your instance is patched, the repository is automatically updated with content appropriate for the precise revisions of interfaces in your environment. Do Not Use Database Tools to Modify Oracle Applications Data Oracle STRONGLY RECOMMENDS that you never use SQL*Plus, Oracle Data Browser, database triggers, or any other tool to modify Oracle Applications data unless otherwise instructed. Oracle provides powerful tools you can use to create, store, change, retrieve, and maintain information in an Oracle database. But if you use Oracle tools such as SQL*Plus to modify Oracle Applications data, you risk destroying the integrity of your data and you lose the ability to audit changes to your data. Because Oracle Applications tables are interrelated, any change you make using an Oracle Applications form can update many tables at once. But when you modify Oracle Applications data using anything other than Oracle Applications, you may change a row in one table without making corresponding changes in related tables. If your tables get out of synchronization with each other, you risk retrieving erroneous information and you risk unpredictable results throughout Oracle Applications. When you use Oracle Applications to modify your data, Oracle Applications automatically checks that your changes are valid. Oracle Applications also keeps track of who changes information. If you enter information into database tables using xiii database tools, you may store invalid information. You also lose the ability to track who has changed your information because SQL*Plus and other database tools do not keep a record of changes. xiv 1 Overview This chapter covers the following topics: • About Oracle Sourcing About Oracle Sourcing Because strategic sourcing is traditionally a time-consuming and complex process, many organizations are not able to source all of their spending for maximum savings. Oracle Sourcing increases the sourcing bandwidth of procurement professionals so they can exploit many more savings opportunities and capture more value from each. Online collaboration and negotiation makes it easy for participants from multiple organizations to exchange information, conduct bid and auction processes, and create and implement agreements. Professional buyers, business experts, and suppliers exchange information online for a more agile and accurate sourcing process. The application also dramatically reduces sourcing cycle time and creates a complete audit trail of supplier commitments. With Oracle Sourcing, your organization can find and exploit saving opportunities that were previously untouched. With Oracle Sourcing you can: • Source more of your spend. • Source for lowest total cost. • Create immediate and long-term savings. Source More of Your Spend Manage more sourcing events in less time and bring them to conclusion faster so you can find and exploit additional savings opportunities. Exploit More Sourcing Opportunities The time required to prepare bidding packages, issue them, and process responses has Overview 1-1 traditionally limited how much sourcing each professional could manage; leaving savings on the table. Oracle Sourcing lends structure to the entire sourcing process, greatly reducing the time and effort required to source each demand. Procurement professionals can use templates to quickly create sourcing events such as RFIs, RFQs, RFPs and reverse auctions. Sourcing events may also be created by directly consolidating demand from Oracle Purchasing. Buyers can even use one-click renegotiation to instantly clone expiring agreements into new sourcing events. Oracle Sourcing slashes the manual effort required to execute each sourcing event. So procurement professionals can do more of what they do best – save money. Slash Time with Online Negotiations With Oracle Sourcing, events are prepared more quickly, concluded sooner, and agreements can be implemented as soon as they are signed. Because it structures requirements-gathering, sourcing events take less time to prepare. Oracle Sourcing consolidates requirements, amendments, and responses in one central location, so suppliers can bid more quickly. Online tools alert buyers to events that need additional supplier actions. Online competition saves time by motivating suppliers to improve terms without time consuming back and forth negotiation. Agreements negotiated in Oracle Sourcing can also be immediately implemented in Oracle Purchasing. So you not only source more, you realize the resulting savings sooner. Make Faster Award Decisions with Online Bid Comparison and Award Rules Manually compiling and comparing bids causes slow and inaccurate award decisions. Oracle Sourcing gathers bids in a consistent and structured format and provides online analysis for fast, accurate awards. Side-by-side and graphical comparisons show at a glance which suppliers provide the best overall value. If your organization has developed spreadsheet models for unique categories, Sourcing also exports pricing and scoring data for offline analysis. Flexible award methods let you cherry-pick suppliers, bid lots and lines for the best pricing; or let Oracle Sourcing arrive at the best possible award based on the predefined scoring criteria. Configurable award rules build in compliance with policies such as minority business preference or multi-sourcing of mission-critical items. The award summary gives sourcing team members a complete view of the award recommendation, while award approvals ensure policy and regulatory compliance. Source for Lowest Total Cost Oracle Sourcing helps you make more best-value award decisions based on total cost, not just unit price. Improve Sourcing Results with Cross-Functional Collaboration Sourcing excellence requires combining the specialized skills of procurement professionals and subject matter experts. But time and distance constraints often make it difficult for all participants to work together. Oracle Sourcing's online collaboration makes it easy for technical, business, and commercial terms experts to lend their expertise to the sourcing process. This ensures both better sourcing processes and 1-2 Oracle Sourcing Implementation and Administration Guide broader buy-in to award decisions. Engaging the right suppliers is equally important to strategic sourcing. Oracle Sourcing lets procurement professionals browse the wealth of supplier information that exists within the company and easily invite new suppliers to ensure highly competitive bids. Leverage Best Practices with Sourcing Knowledge Capture The knowledge and best-practices that saved money in one sourcing event are often lost when that event ends or an employee departs. Oracle Sourcing allows sourcing professionals to capture best-practice category knowledge for reuse. All of the successful elements from past events can be captured into category-specific templates for RFQs, RFIs and online auctions. Reusable invitation lists bring in the best suppliers. Reusable pricing elements align buying with supplier cost structures for the lowest total cost. Reusable negotiation styles capture knowledge of which event type and bidding rules will yield the best value. With Oracle Sourcing, your best sourcing knowledge is continually leveraged over time and across the enterprise. Increase Savings with Lowest Total Cost Analysis and Complete Bid Package Evaluation Sourcing professionals know that the lowest price does not always yield the lowest total cost. Oracle Sourcing enables lowest total cost analysis by identifying cost drivers and hidden costs that drive up total cost. Multi-attribute weighted scoring and pricing, including price breaks and price elements, enable procurement professionals to strategically define items and services and effectively negotiate with suppliers. Sourcing also provides configurable scoring criteria to analyze bid supplier strengths and weakness that affect downstream costs. Bids can be scored on any combination of price and buyer-defined criteria such as delivery dates, quality, vendor reliability and financial stability. Create Immediate and Long-Term Savings Oracle Sourcing creates immediate savings with rapid deployment and ROI, and with consistent execution through the Oracle Advanced Procurement Suite. Start Saving Immediately with Rapid Deployment Purchasing professionals know that even small percentage savings add up to a massive contribution to the bottom line. So every day that sourcing professionals aren't 100% productive costs your business money. Oracle Sourcing can have a dramatic impact on your sourcing organization in weeks, not months. The application can be run on-site or hosted, and works both independently and as part of the Oracle Advanced Procurement Suite. So you can apply Oracle Sourcing to current and upcoming sourcing opportunities and start saving right away, while ensuring that your solution can grow as needed. Achieve Rapid ROI through Open Competition Improving sourcing can save event. Organizations using Oracle even incumbent suppliers to risk by providing clearer requirements Reduced risk allows suppliers already have open today. Overview 1-3 Realize Long Term Savings with Consistent Execution and Compliance Even the best purchasing agreements are worth little unless they are consistently enforced. Oracle Sourcing provides even more savings to your organization when used within the Oracle Advanced Procurement suite by ensuring consistent execution from requisition to payment. Oracle Procurement Contracts drives compliance with built-in tracking of contract deliverables. Oracle Purchasing seamlessly executes agreements negotiated in Oracle Sourcing. Employee self-service requisitions placed in Oracle iProcurement automatically default to preferred suppliers at Sourcing-negotiated prices. Oracle Daily Business Intelligence monitors contract utilization and compliance and lays the ground work for finding new opportunities. The Oracle Advanced Procurement suite leverages the value of Oracle Sourcing by implementing and enforcing purchasing agreements enterprise-wide. Unified Sourcing Platform Oracle Sourcing is tightly integrated with the procurement modules of the E-Business Suite. Oracle E-Business Suite enables companies to efficiently manage customer processes, manufacture products, ship orders, collect payments, and more - all from applications that are built on a unified information architecture. This information architecture provides a single definition of customers, suppliers, employees, and products - all aspects of the business. Whether one module or the entire suite is implemented. Oracle E-Business Suite enables procurement professionals to share unified information across the enterprise and smarter decisions with better information. Oracle Sourcing Business Flows There are three typical business flows that utilize Oracle Sourcing. • 1-4 Sourcing buyers can use the Demand Workbench feature of Oracle Purchasing to select approved requisition lines and aggregate demand into a draft auction or a Sourcing RFQ. Buyers can use the Demand Workbench without leaving Oracle Sourcing. The backing requisition line information is retained throughout the life cycle of the sourcing document. Oracle Sourcing Implementation and Administration Guide Creating New Documents Using Demand Workbench • Oracle Purchasing buyers can select a blanket purchase agreement (BPA) and use it as the basis of a new auction or Sourcing RFQ. The details of the BPA (including header, attachments, price breaks) are copied to the draft negotiation, and the sourcing lines refer to the originating BPA lines. Creating New Documents from Existing Blanket Purchase Agreements • Oracle Sourcing buyers can define sourcing documents directly in Oracle Sourcing. Inventory items can be selected and goods and services can be entered directly. A large number of items can be quickly entered by using the spreadsheet upload feature. Overview 1-5 Creating Documents Directly in Oracle Sourcing Buyers have visibility to information throughout the complete procurement process. Oracle Purchasing users can view the awards that initiated the standard purchase order or blanket purchase agreement. Likewise, requisitioners in Oracle iProcurement can view the negotiation in which their requisitions are being negotiated. Suppliers accessing Oracle iSupplier Portal can drill down from a purchase order to the backing sourcing document and quotation in Oracle Sourcing. 1-6 Oracle Sourcing Implementation and Administration Guide 2 Implementing Oracle Sourcing This chapter covers the following topics: • Introduction • Overview of Oracle Sourcing Implementation • Upgrading an Existing Oracle Sourcing System • Prerequisites • Oracle Sourcing Implementation Steps • Set the Enterprise Name (Required) • Define System Profile Options (Required) • Assign Sourcing Responsibilities (Required) • Define Buyer Security (Optional) • Set Up Attribute Groups and Requirement Sections (Optional) • Set Up Negotiations Configuration (Optional) • Subscribe to Notifications (Optional) • Register Suppliers and Supplier Users (Required) • Define Negotiation Terms and Conditions (Optional) • Define Reusable Attribute Lists (Optional) • Define Reusable Requirement Lists (Optional) • Define Cost Factors and Cost Factor Lists (Optional) • Define Reusable Invitation Lists (Optional) • Define Negotiation Styles (Optional) • Define Purchasing Document Style (Optional) • Define Negotiation Templates (Optional) • Create Abstracts and Forms (Optional) Implementing Oracle Sourcing 2-1 • Set Up Document Print Layouts (Optional) • Set Up Demand Workbench (Optional) • Enable Award Approval (Optional) • Enable Sourcing Optimization (Optional) • Enable Oracle Procurement Contracts (Optional) • Enable Oracle Services Procurement (Optional) • Set Up Inbox for Notifications (Optional) • Set Up Enhanced Supplier Search Feature (Optional) • Enable Supplier Site Access (Optional) • Enable Supplier Scorecard (Optional) • Customize Content (Optional) • Extend Sourcing Business Events (Optional) Introduction New Customers A new Oracle Sourcing system can be easily implemented. If you have Oracle Purchasing also implemented, the Oracle Sourcing implementation process is even easier. Additionally, many implementation steps are optional. This chapter details the steps required to implement a new Oracle Sourcing system. Existing Customers Additionally, existing customers can use the information contained in this chapter to upgrade an existing Oracle Sourcing system. See Upgrading an Existing System , page 2-7 later in this chapter for instructions on upgrading your existing Oracle Sourcing system. Implementing Other E-Business Suite Applications Oracle Sourcing makes use of setup and reference data managed in other E-Business Suite applications, especially Oracle Purchasing. Therefore some portions of other E-Business Suite applications must also be implemented to use Oracle Sourcing. The Prerequisite step listed in the table below requires you to check the information in Appendix A, "Implementing E-Business Suite for Oracle Sourcing.", page A-1 If you have not implemented the required portions of the Oracle E-business Suite, use the information in this appendix, along with the indicated product documentation, to perform the required implementation steps. Additionally, there are some Oracle Purchasing steps that are not required by Oracle Sourcing but can be used to support multi-national negotiations, reflect your company's business structure, standardize your business practices, or support optional features of Oracle Sourcing. See Optional E-Business Suite Implementation Steps in Appendix A, 2-2 Oracle Sourcing Implementation and Administration Guide "Implementing E-Business Suite for Oracle Sourcing.", page A-1 for information on these steps. Overview of Oracle Sourcing Implementation The table below identifies the steps necessary to implement Oracle Sourcing. It includes steps performed both within Oracle Sourcing and in responsibilities outside of Oracle Sourcing. For each step, the table indicates whether the step is required and where to look for additional information if any is needed. The remainder of this chapter provides an expanded discussion of each implementation step. If the step is performed using the Administration functions within Oracle Sourcing, detailed information on navigation paths and page- level information is given in this chapter. If the step is performed outside of Oracle Sourcing, references to appropriate documentation are given as well as any Oracle Sourcing specific instructions on performing that step. Since Oracle Sourcing is one of E-Business suite applications, suppliers and supplier users must register with the system. Once they receive their system-generated signons and passwords, they can access and participate in negotiations. Oracle Sourcing provides features to allow suppliers and supplier users to easily register with the system. New System Implementation Steps Step Number Step Name Required? Information Source Prerequisite Review Information in Appendix A Yes Appendix A, Implementing E-Business Suite for Oracle Sourcing 1 Set the Enterprise Name. Yes Instructions in this chapter. 2 Define System Profile Options Yes Oracle Applications System Administrator's Guide using the information in this chapter. Implementing Oracle Sourcing 2-3 2-4 Step Number Step Name Required? Information Source 3 Assign Sourcing Responsibilities Yes Oracle Applications System Administrator's Guide using information in this chapter. 4 Define Buyer Security No Oracle Purchasing User's Guide using information in this chapter. 5 Set Up Attribute Groups and Requirement Sections No Oracle Applications Developer's Guide using information in this chapter. 6 Set Up Negotiations Configuration No Instructions in this chapter. 7 Subscribe to Notifications No Instructions in this chapter and Appendix. 8 Register Suppliers and Supplier Users Yes Oracle Applications iSupplier Portal User's Guide. 9 Define Negotiation Terms and Conditions No Instructions in this chapter. 10 Define Reusable Attribute Lists No Instructions in this chapter. 11 Define Reusable Requirement Lists No Instructions in this chapter. 12 Define Cost Factors and Cost Factor Lists No Instructions in this chapter. 13 Define Reusable Invitation Lists No Instructions in this chapter. Oracle Sourcing Implementation and Administration Guide Step Number Step Name Required? Information Source 14 Define Negotiation Styles No Instructions in this chapter. 15 Define Purchasing Document Styles No Oracle Purchasing User's Guide using instructions in this chapter. 16 Define Negotiation Templates No Instructions in this chapter. 17 Create Abstracts and Forms No Instructions in this chapter. Oracle Applications System Administrator's Guide using information in this chapter for creating value sets and values. 18 Set Up Document Print Layouts No Oracle XML Publisher User's Guidefor instructions on creating templates. Oracle Purchasing User's Guide for instructions on assigning templates to documents. 19 Set Up Demand Workbench No Oracle Applications System Administrator's Guide and Configuring, Reporting, and System Administration in Oracle HRMS using information in this chapter. Implementing Oracle Sourcing 2-5 Step Number Step Name Required? Information Source 20 Enable Award Approval No Oracle Approvals Management Implementation Guide using Instructions in this chapter. 21 Enable Sourcing Optimization No Oracle Applications System Administrator's Guide using instructions in this chapter. 22 Enable Oracle Procurement Contracts No Oracle Applications System Administrator's Guide for information on setting profile options and security. Oracle Purchasing User's Guide for information on setting document types. 2-6 23 Enable Oracle Services Procurement No Oracle Applications System Administrator's Guide using information in this chapter. 24 Set Up Inbox for Notifications No Information in this chapter. 23 Set Up Enhanced Supplier Search Feature No Oracle iSupplier Portal User's Guide. 25 Enable Supplier Site Access No Oracle Payables User Guide using information in this chapter. Oracle Sourcing Implementation and Administration Guide Step Number Step Name Required? Information Source 26 Enable Supplier Scorecard No Oracle Daily Business Intelligence Implementation Guide using instructions in this chapter. 27 Customize Content No Instructions in this chapter. 28 Extend Sourcing Business Events No Oracle Workflow Developer's Guide using instructions in this chapter. Upgrading an Existing Oracle Sourcing System If you are upgrading an existing Oracle Sourcing system, most of the steps identified in the table above have already been performed and do not need to be performed again. Those steps can be omitted when upgrading. The table below lists the setup steps that deal with the new release features. If there are setups that have been done previously but for which there are new release ramifications, the new information is noted in the Release Details column. You may wish to read the information for that step to decide whether to perform the setup again to enable the new functionality. If there is no information in the Release Details column, that step concerns a feature that is new for this release. Read the information for that step to decide whether to enable the new feature. Implementing Oracle Sourcing 2-7 Existing System Implementation Steps 2-8 Step Number Step Name Required? Information Source Release Details 1 Define System Profile Options Yes Oracle Applications System Administrator's Guide using the information in this chapter. The following system profiles are new: • PON: Automatical ly Default Catalog Attributes • Self-Service Accessibility Features 2 Assign Sourcing Responsibilities Yes Oracle Applications System Administrator's Guide using information in this chapter. Job functions have been reallocated among menus to facilitate easier responsibility definition 3 Set Up Attribute Groups and Requirement Sections No Oracle Applications Developer's Guide using information in this chapter. Header attributes are now called Requirements 4 Set Up Negotiations Configuration No Instructions in this chapter. Many negotiations configuration features are new. 5 Subscribe to Notifications No Instructions in this chapter and Appendix. Oracle Sourcing Implementation and Administration Guide Step Number Step Name Required? Information Source Release Details 6 Register Suppliers and Supplier Users Yes Oracle Applications iSupplier Portal User's Guide. Supplier Users can be directly registered and/or approved during negotiation creation. 7 Define Reusable Requirement Lists No Instructions in this chapter. 8 Define Cost Factors and Cost Factor Lists No Instructions in this chapter. 9 Define Negotiation Styles No Instructions in this chapter. 10 Define Purchasing Document Styles No Oracle Purchasing User's Guide using instructions in this chapter. 11 Enable Award Approval No Oracle Approvals Management Implementation Guide using Instructions in this chapter. 12 Enable Supplier Scorecard No Oracle Daily Business Intelligence Implementation Guide using instructions in this chapter. Price Factors have been renamed to Cost Factors Approvals can now use position hierarchy as well as employee supervisor models Implementing Oracle Sourcing 2-9 Step Number Step Name Required? Information Source 13 Extend Sourcing Business Events No Oracle Workflow Developer's Guide using instructions in this chapter. Release Details Prerequisites Before you begin implementing Oracle Sourcing, you should consult the information on implementation steps performed in other E-Business Suite applications located in Appendix A, "Implementing E-Business Suite for Oracle Sourcing." Note that if Oracle Purchasing has already been installed, these steps may have already been performed. If Oracle Purchasing has not been implemented, you should perform all the required steps and whichever optional steps you decide are appropriate. Oracle Sourcing Implementation Steps Implementing Oracle Sourcing includes performing tasks in both Oracle Sourcing as well as other applications. Implementation tasks performed in other applications typically use an administrative or super user type of responsibility within that application. The particular step details in this chapter will indicate which responsibility is needed to perform the task within that application. Implementation tasks performed within Oracle Sourcing are performed by the Sourcing Super User. The Sourcing Super User is responsible for setting up and maintaining the Oracle Sourcing system. This includes many tasks such as initial system setup and customization, as well as creating negotiation creation tools such as reusable cost factor lists, reusable attribute lists, and reusable invitation lists. You can later update many values you set at implementation time if necessary. Using the Administration Tab Functions The implementation steps you perform as the Sourcing Super User use the setup and administration functions are available from the Negotiations Administration page. This page appears when you click the Administration tab. 2-10 Oracle Sourcing Implementation and Administration Guide You use the links available from this page to set up and maintain your Oracle Sourcing system. Set the Enterprise Name (Required) You can specify the Enterprise name that is used by the system. To specify this name, run the following script $APPL_TOP/pos/12.0.0/patch/120/sql/POSENTUP.sql This script prompts for an enterprise name and updates the relevant tables with this information. If you do not run this script, "Default enterprise name" will be used by the system as the company name. Define System Profile Options (Required) Profile options are one way to control system processing. They can control resource usage as well as enable or disable certain application features. The following system profile options relate to Oracle Sourcing. Other profile options are involved with enabling integrations between Oracle Sourcing and other applications such as Oracle Procurement Contracts and Oracle Services Procurement. • Setting the option PO: Allow Autocreation of Oracle Sourcing Documents to Yes enables buyers to use AutoCreate to generate draft auctions and Sourcing RFQs that can then be completed and awarded in Oracle Sourcing. Implementing Oracle Sourcing 2-11 • Setting the option PO: Display the Autocreated Document to Yes allows Sourcing to launch automatically from Oracle Purchasing once your buyers have finished AutoCreating the draft sourcing document. Buyers must also have a responsibility that contains the Edit Draft Negotiation function. • The Award Approval feature allows buyer to go through an approval process before creating a Purchase Order. Before using this functionality, you need to implement Oracle Approvals Management following instructions in the Implementing Oracle Approvals Management. Afterwards, set PON: Enable Sourcing Award Approval to Yes. • The system can search recent supplier transactions. Buyers can use this transaction history to research a supplier's performance, for example, when identifying suppliers to invite to a particular negotiation. Set the PON: Supplier Transaction History Time Period to a number to indicate the number of prior days the system should search for supplier transaction details. • PON: Automatically Default Catalog Attributes Determines the type of catalog attributes Oracle Sourcing automatically adds to a negotiation line when a shopping category is selected. • All - both base and category descriptors are added to the linė • Base - only base descriptors are added to the line. • Category - only category descriptors are added to the line. • None - no descriptors are automatically added to the line. • PON:External Application Framework Agent specifies a URL (typically outside your firewall) will be used for the links in notifications sent to suppliers. • In addition to the reports available from Oracle Sourcing, if you have Oracle Daily Business Intelligence implemented, you can set POA: DBI Implementation to Yes to access additional reports from Oracle DBI. • The POS: External URL is used to construct the link to supplier registration page as well as the external abstract page. • Set the Self-Service Accessibility Features to None to enable rich-text capabilities when defining Requirements. • Sourcing Default Responsibility for External User specifies the responsibility that will be assigned to any external user whose registration is initiated from Oracle Sourcing. See Oracle Applications System Administrator's Guide for information on setting system profiles. 2-12 Oracle Sourcing Implementation and Administration Guide Assign Sourcing Responsibilities (Required) During this step, you assign your users the responsibilities they need to perform their jobs. As you assign a user a responsibility, make sure that each user's profile contains a first name, last name, and e-mail address. See Managing Your Workforce Using Oracle HRMS for instructions on setting up personnel entries in Oracle HRMS. See Oracle Applications System Administrator's Guide for instructions on assigning a responsibility to a user. The Sourcing Super User, Sourcing Buyer, Sourcing Team Member, and Sourcing Supplier responsibilities come predefined with most of the necessary job functions. However, you can create customized responsibilities using the menus and job functions available. For a complete list of the menus and job functions defined to each responsibility , see Appendix B, "Oracle Sourcing Responsibilities and Functions.", page B-x The information in that appendix will help you decide whether to create a customized responsibility, and if so, which menus and job functions to assign to the new responsibility. See Oracle Applications System Administrator's Guide for instructions on defining a new responsibility. Controlling Publishing, Unlocking/Unsealing, and Awarding Negotiations The following job functions (among others) come predefined to the Sourcing Super User and the Sourcing Buyer responsibilities. But since they deal with publishing negotiations, unlocking/unsealing negotiations, and awarding business; for security reasons, you may wish to use the Sourcing Team Member responsibility or create a customized responsibility that does not include them. Note that you should always create a new customized responsibility and not change a seeded responsibility. Seeded Sourcing Job Functions Function Description Seeded in Super User Seeded in Buyer Seeded in Team Member Award My Negotiations Users can make award decisions for negotiations they created. Yes Yes No Unlock Sealed Negotiations Users can unlock any sealed negotiations. Yes Yes No Implementing Oracle Sourcing 2-13 Function Description Seeded in Super User Seeded in Buyer Seeded in Team Member Unseal Sealed Negotiations Users can unseal any sealed negotiations. Yes Yes No Publish Negotiation Users can publish negotiations. Yes Yes No The following job functions are assigned to the Sourcing Super User but not to the Sourcing Buyer or Sourcing Team Member. You will need to explicitly grant them to buyers and team members. Other Negotiations Job Functions Function Description Seeded in Super User Seeded in Buyer Seeded in Team Member Award Others' Negotiations Users can make award decisions for negotiations created by other users Yes No No Manage Draft Sourcing Documents Users can edit, delete, and publish any draft negotiations. Yes No No Manage Sourcing Document Templates Users can create, edit, and manage negotiation templates. Yes No No See Oracle Applications System Administrator's Guide for instructions on creating a customized responsibility. Granting Collaboration Team Management Capabilities Collaboration Teams allow groups of buyers within an organization to work together to create and manage a negotiation. The following function allows collaboration members to add and/or delete other members from the team (the owner of the negotiation has 2-14 Oracle Sourcing Implementation and Administration Guide this ability by default). Users who have been defined to the team, have been assigned this function, and are not restricted to view-only access, can manage the make-up of the collaboration team. This function is seeded for the Sourcing Super User; you must explicitly grant this job function to your buyers as appropriate. Collaboration Team Management Job Function Function Description Seeded in Super User Seeded in Buyer Seeded in Team Member Manage Collaboration Team Users can manage the collaboration team for negotiations that they can access. Yes No No For details on Sourcing responsibilities, see Appendix B, "Oracle Sourcing Responsibilities and Functions.", page B-x • Grant your buyers the Sourcing Buyer responsibility. • Grant any users who will participate as collaboration team members the Sourcing Team Member responsibility. • Grant any users who will be maintaining the Oracle Sourcing system the Sourcing Super User responsibility. Note: If any responsibilities have been customized, ensure that the Sourcing Supplier responsibility does not contain any functions which belong only to the Sourcing Buyer or the Sourcing Super User. For information on which functions are appropriate for the Sourcing Supplier responsibility, see Appendix B, "Oracle Sourcing Responsibilities and Functions." Define Buyer Security (Optional) Buyer Security allows buyers to have the ability to secure sourcing documents. It also provides organizations extended flexibility over buyer actions. Buyers accept a default security-level or can choose to override it under special circumstances. There are three levels of possible security: • Public: All system users can access the document. Implementing Oracle Sourcing 2-15 • Private: The document owner, collaboration team members, and the subsequent approver(s) can access the document. • Hierarchy: The document owner, collaboration team members, and subsequent approver(s), and any other individuals higher in the security hierarchy than the document owner can access the document. This security hierarchy is shared with Oracle Purchasing. With Private and Hierarchy security, buyers will grant explicit access for each sourcing document by assigning people to the collaboration team. Additionally, any buyer can be limited to view-only or scoring access, and/or assigned as a document approver. To set up buyer security: • Run the Replicate Seed Data concurrent program for each operating unit in your enterprise. (Run this program in Single Organization mode if you have not set up multiple operating units). Please see the Oracle Applications System Administration Guide manual for instructions on how to run concurrent programs. • Once the Replicate Seed Data program has been run, Oracle Sourcing will use the security level of Public as the default for all Sourcing documents. If you wish to set the default to a different level: • 1. Log into Oracle Purchasing with a responsibility that allows the update of document types. 2. Navigate to the Document Types page. Setup>Purchasing>Document Types 3. Select the appropriate Operating Unit and click Go. Click Update for the Document Type used in Oracle Sourcing (Sourcing Buyer Auction, Sourcing RFQ, or Sourcing RFI). 4. Select the new security level (Public, Private, or Hierarchy) from the Security Level drop down menu. 5. Click Apply. Note that if you select Hierarchy as the security level, Oracle Sourcing will use the hierarchy set up in the Purchasing Options page when granting access to this document type. Set Up Attribute Groups and Requirement Sections (Optional) Requirements solicit header level information from a supplier when the supplier responds to a negotiation. Requirements can be grouped into Sections. You can then use sections to logically and coherently structure the questions you wish the supplier to answer. A Sourcing Administrator can create sections to which buyers later assign their 2-16 Oracle Sourcing Implementation and Administration Guide Requirements w